Regionalization: Avoiding Loss of Control

Many international companies are currently considering regionalizing their production and upstream supply chains for specific markets to a greater extent and making their subsidiaries in different world regions more independent of each other. The goal is to secure supply chains by deepening regional value creation and to better meet regional customer needs through regionally manufactured… Continue reading Regionalization: Avoiding Loss of Control

The Personal Information Protection Law (PIPL) Challenges Companies

After three revisions, China’s Personal Information Protection Law (PIPL), which has received much attention abroad, will come into force on November 1, 2021. It comprehensively protects personal data, going beyond the European General Data Protection Regulation (GDPR) – a milestone in Chinese legal history. Take Big Data price discrimination, for example: it refers to the… Continue reading The Personal Information Protection Law (PIPL) Challenges Companies

The German Supply Chain Act Requires in China Compliance

The new German Supply Chain Act (LkSG) brings far-reaching new due diligence requirements for managers. They must strive to avoid risks related to the violation of human rights and the environment and to manage the company responsibly across borders. The law, which will apply from 2023, initially only affects German companies with more than 3,000… Continue reading The German Supply Chain Act Requires in China Compliance

China Fights Misleading through Deepfakes

China is increasingly cracking down on illegal deepfakes – fake digital representations of people in image, video or audio formats created using artificial intelligence for the purpose of deception. The counterfeiter usually collects facial or body data of a person in the form of images and uploads them to an AI algorithm. This processes the… Continue reading China Fights Misleading through Deepfakes

MLPS 2.0: China Steps Up Its Cybersecurity Inspections

Implementation of the Cyber Security Law through the Multi Level Protection Scheme (MLPS 2.0) is mandatory for all companies established in China. Because implementation has been slow, the government has now stepped up cybersecurity monitoring and is urging companies to fulfill their MLPS obligations. The authorities are particularly targeting the industrially strong regions, where many… Continue reading MLPS 2.0: China Steps Up Its Cybersecurity Inspections

The Obligation to Localize Data Affects More Companies

When it comes to data protection in China, data localization is inevitable for foreign companies. The basic requirements are currently mainly set out in the Cyber Security Law, and many service providers such as the financial sector, providers of public health information, and online cab booking services have issued their own data localization requirements. The… Continue reading The Obligation to Localize Data Affects More Companies

China Wants to Open its Cloud Services Market to EU Companies

China’s opening to European investment, the Investment Agreement between China and the EU promises, includes market access in many sectors – including cloud services and other online services. China has agreed to open its cloud services sector to EU investment up to a 50% cap. The entry into force of the CAI may thus create… Continue reading China Wants to Open its Cloud Services Market to EU Companies

The Long Arm of the Law: New Draft Law on the Protection of Personal Data

China continues to improve data protection with the Personal Information Protection Law (PIPL). The law, along with the Cyber Security Law and the Data Security Law (still in draft form), will further strengthen personal data protection and have a profound impact on companies inside and outside China.  Foreign companies need to pay particular attention to… Continue reading The Long Arm of the Law: New Draft Law on the Protection of Personal Data

China’s National Security Law: Restrictions on Data and Technology

The National Security Law (NSL), which came into force in June 2020, has implications for Hong Kong-based businesses in terms of technology and data. For example, Internet service providers must now grant the authorities access to user data and review their cross-border data flows. Technology companies must restructure their business activities if Western export bans… Continue reading China’s National Security Law: Restrictions on Data and Technology

China’s New Data Protection Law Requires More Compliance

The National People’s Congress presented the draft for the new Data Security Law (DSL) in July 2020. In contrast to the Cyber Security Law (CSL), which has been in force since 2017, the Data Security Law will regulate all data activities within the country. The scope of the new DSL law is thus exceptionally broad:… Continue reading China’s New Data Protection Law Requires More Compliance